Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (10,600 units at $300 each)	$	3,180,000
Variable costs (10,600 units at $240 each)		2,544,000
Contribution margin	$	636,000
Fixed costs		480,000
Pretax income	$	156,000

1. Assume Co. has a target pretax income of $172,000 for 2018. What amount of sales (in dollars) is needed to produce this target income? 2. If he achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)